Excise Tax Act (R.S.C., 1985, c. E-15)

68.161 [Repealed, 2001, c. 16, s. 27]

• 68.162 [Repealed, 2001, c. 16, s. 27]

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 1994, c. 29, s. 7
  • 2001, c. 16, s. 27

• 68.163 [Repealed, 2001, c. 16, s. 27]

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 1994, c. 29, s. 7
  • 2001, c. 16, s. 27

• 68.164 [Repealed, 2001, c. 16, s. 27]

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 1994, c. 29, s. 7
  • 2001, c. 16, s. 27

• 68.165 [Repealed, 2001, c. 16, s. 27]

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 1994, c. 29, s. 7
  • 2000, c. 30, s. 140
  • 2001, c. 16, s. 27

• 68.166 [Repealed, 2001, c. 16, s. 27]

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 1994, c. 29, s. 7
  • 2001, c. 16, s. 27

• 68.167 [Repealed, 2001, c. 16, s. 27]

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 1994, c. 29, s. 7
  • 2001, c. 16, s. 27

• 68.168 [Repealed, 2001, c. 16, s. 27]

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 1994, c. 29, s. 7
  • 2001, c. 16, s. 27

• 68.169 [Repealed, 2001, c. 16, s. 27]

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 1994, c. 29, s. 7
  • 1995, c. 36, s. 6
  • 1997, c. 26, s. 68
  • 1998, c. 21, s. 81
  • 2000, c. 30, ss. 13, 140
  • 2001, c. 16, s. 27

Marginal note:Payment where use as ships’ stores

68.17 If tax under Part III has been paid in respect of any goods and a manufacturer, producer, wholesaler, jobber or other dealer has sold the goods for use as ships’ stores, an amount equal to the amount of that tax shall, subject to this Part, be paid to that dealer if that dealer applies for it within two years after that sale of the goods.

68.171 [Repealed, 2002, c. 22, s. 378]

68.172 [Repealed, 2002, c. 22, s. 378]

Marginal note:Payment where goods in inventory

• 68.18 (1) If tax under Part III has been paid in respect of any goods and a person holds the goods in an unused condition in inventory on the day a licence is granted to that person under section 54 or 64 and could thereafter have obtained the goods exempt from tax under subsection 23(7), an amount equal to the amount of that tax shall, subject to this Part, be paid to that person if that person applies for it within two years after the licence was granted.

• Marginal note:Payment where goods in inventory

  (2) If tax under Part III has been paid in respect of any goods and a person holds the goods in an unused condition in inventory on the day a licence is granted to that person under section 55 and could thereafter have obtained the goods exempt from tax under subsection 23(6), (7) or (8), an amount equal to the lesser of the amount of that tax and the amount of tax under Part III that would be payable if the goods were acquired in a taxable transaction by that person on that day shall, subject to this Part, be paid to that person if that person applies for it within two years after the licence was granted.

• Marginal note:Exception

  (3) No amount equal to the amount of tax under Part III shall be paid under subsection (2) to a person in respect of any goods that are not subject to tax under that Part on the day a licence is granted to that person under section 55.

• (3.1) [Repealed, 2002, c. 22, s. 379]

• Marginal note:Unused condition

  (4) For the purposes of this section, goods are in an unused condition if they are new or have not been used in Canada.

Marginal note:Payment — use by province

• 68.19 (1) If tax under Part III has been paid in respect of any goods that His Majesty in right of a province has purchased or imported, an amount equal to the amount of that tax shall, subject to this Part, be paid to His Majesty in right of the province if His Majesty in right of the province has purchased or imported those goods for any purpose other than

  • (a) resale;

  • (b) use by any board, commission, railway, public utility, university, manufactory, company or agency owned, controlled or operated by the government of the province or under the authority of the legislature or the lieutenant governor in council of the province; or

  • (c) use by His Majesty in right of the province, or by any agents or servants of His Majesty in right of the province, in connection with the manufacture or production of goods or use for other commercial or mercantile purposes.

• Marginal note:Application

  (1.1) No amount shall be paid under subsection (1) in respect of goods purchased or imported by His Majesty in right of a province unless an application for the payment is made within two years after His Majesty in right of the province purchased or imported those goods.

• Marginal note:Election

  (1.2) His Majesty in right of a province and the particular person that is, as the case may require, the importer, transferee, manufacturer, producer, wholesaler, jobber or other dealer in respect of goods that His Majesty in right of the province purchases or imports may jointly elect, in prescribed form containing prescribed information, to have the following rules apply in respect of the purchase or importation:

  • (a) the particular person, and not His Majesty in right of the province, is entitled to apply for a payment under subsection (1) in respect of the purchase or importation; and

  • (b) the amount payable by the Minister under subsection (1) in respect of the purchase or importation shall be paid to the particular person, and not to His Majesty in right of the province.

• Marginal note:Limitation

  (1.3) No more than one election under subsection (1.2) may be made by His Majesty in right of a province in respect of a particular purchase or importation of goods.

• Marginal note:Exception

  (2) Subsection (1.2) does not apply in respect of goods purchased or imported by His Majesty in right of a province at a time when a reciprocal taxation agreement referred to in section 32 of the Federal-Provincial Fiscal Arrangements Act is in force in respect of the province.

• Marginal note:Non-application of subsection 68.2(1)

  (3) For greater certainty, if an application for a payment in respect of goods can be made by any person in accordance with subsection (1), subsection 68.2(1) does not apply in respect of the goods.

Marginal note:Payment where subsequent exempt sale

• 68.2 (1) Where tax under Part III or VI has been paid in respect of any goods and subsequently the goods are sold to a purchaser in circumstances that, by virtue of the nature of that purchaser or the use to which the goods are to be put or by virtue of both such nature and use, would have rendered the sale to that purchaser exempt or relieved from that tax under subsection 23(6), paragraph 23(8)(b) or subsection 50(5) or 51(1) had the goods been manufactured in Canada and sold to the purchaser by the manufacturer or producer thereof, an amount equal to the amount of that tax shall, subject to this Part, be paid to the person who sold the goods to that purchaser if the person who sold the goods applies therefor within two years after he sold the goods.

• Marginal note:Application of anti-avoidance rule

  (2) Section 274 applies, with such modifications as the circumstances require, to any transaction

  • (a) that is a sale of goods that would give rise to the application of, or that is the basis of an application under, subsection (1), and

  • (b) that takes place after December 17, 1990 and before 1991,

  and for that purpose, every reference in that section to “an assessment, a reassessment or an additional assessment” shall be read as a reference to “an assessment, a reassessment, an additional assessment, a determination or a redetermination”.

Marginal note:Definitions

• 68.21 (1) In this section,

  arm’s length sale

  arm’s length sale means a sale of goods by a licensed manufacturer to a person with whom the manufacturer is dealing at arm’s length at the time of the sale; (vente sans lien de dépendance)

  fiscal period

  fiscal period means a fiscal period as determined for the purposes of the Income Tax Act. (exercice)

• Marginal note:Payment where bad debt

  (2) Where ad valorem tax under Part III or VI has been paid by a licensed manufacturer in respect of an arm’s length sale occurring on or after February 16, 1984 and the manufacturer has established, in accordance with generally accepted accounting practices, that any debt owing to him in respect of the sale has become in whole or in part a bad debt and has accordingly written off the debt as a bad debt in his books of account, an amount equal to the proportion of the amount of that tax that the amount of the debt written off is of the price for which the goods were sold shall, subject to this Part, be paid to that manufacturer if he applies therefor in the two years after the end of his fiscal period during which the debt was so written off.

• Marginal note:Recovery of payment

  (3) Where a licensed manufacturer recovers all or any part of a debt in respect of which an amount is paid to him pursuant to subsection (2), in this subsection referred to as the “refunded amount”, that manufacturer shall forthwith pay to Her Majesty an amount equal to the proportion of the refunded amount that the amount of the debt so recovered is of the amount of the debt written off in respect of which the refunded amount was paid.

Marginal note:Payment where warranty

68.22 Where tax under Part III or VI has been paid in respect of any goods that a licensed manufacturer gives away as free replacement parts under a written warranty given in respect of the goods into which the parts are to be incorporated and the amount, if any, charged for the warranty is included in the sale price charged by the licensed manufacturer for the goods into which the parts are to be incorporated or, if those goods are imported goods, in the duty paid value thereof, an amount equal to the amount of that tax shall, subject to this Part, be paid to that manufacturer if he applies therefor within two years after he gave away the goods.

Definition of system goods

• 68.23 (1) In this section, system goods means

  • (a) goods purchased for use directly in a water distribution, sewerage or drainage system, and

  • (b) goods used in the construction of a building, or that part of a building, used exclusively to house machinery and apparatus for use directly in a water distribution, sewerage or drainage system,

  but does not include chemicals purchased for use or used in the treatment of water or sewage in any such system.

• Marginal note:Payment where use in certain systems

  (2) Where tax under Part VI has been paid in respect of any system goods and the purchaser of the goods has, within three years after the completion of the system for which the goods were purchased or in which the goods were used, as the case may be, transferred the system without charge to a municipality pursuant to a by-law of or an agreement with that municipality, an amount equal to the amount of that tax shall, subject to this Part, be paid to that purchaser if he applies therefor within two years after that transfer of the system.

• Marginal note:Declaration

  (3) For the purposes of subsection (2), the Minister may declare any agency operating a water distribution, sewerage or drainage system for or on behalf of a municipality to be a municipality.

Marginal note:Definitions

• 68.24 (1) In this section,

  certified institution

  certified institution means a non-profit organization or charity that holds a valid and subsisting certificate issued under subsection (2); (institution titulaire de certificat)

  charity

  charity has the meaning assigned by subsection 149.1(1) of the Income Tax Act; (organisme de bienfaisance)

  Minister

  Minister means the Minister of National Health and Welfare; (ministre)

  non-profit organization

  non-profit organization means a club, society or association described in paragraph 149(1)(l) of the Income Tax Act; (organisation sans but lucratif)

  prescribed

  prescribed means prescribed by the Minister; (Version anglaise seulement)

  previously certified institution

  previously certified institution means a non-profit organization or charity that holds a valid and subsisting certificate issued under this section, as it read immediately before February 11, 1988; (institution déjà titulaire de certificat)

  specified day

  specified day means

  • (a) in relation to a certified institution, the later of

    • (i) the day specified in the certificate pursuant to subsection (3), and

    • (ii) the first day of April preceding the day on which the application for the certificate was received by the Minister, and

  • (b) in relation to a previously certified institution, the later of

    • (i) the day specified in the certificate pursuant to this section, as it read immediately before February 11, 1988, and

    • (ii) the first day of April preceding the day on which the application for the certificate was received by the Minister. (jour spécifié)

• Marginal note:Issue of certificate

  (2) On application in the prescribed form and manner and containing the prescribed information, the Minister may issue a certificate to the applicant for the purposes of this section, if the Minister is satisfied that the applicant is a non-profit organization or charity

  • (a) whose principal purpose is to provide care, of such type as the Governor in Council may prescribe by regulation on the recommendation of the Minister and the Minister of Finance,

    • (i) to children, or to aged, infirm or incapacitated persons, who are in need of care on a continuous or regular basis, and

    • (ii) on its own premises by means of qualified persons in sufficient numbers in relation to the type of care provided; or

  • (b) whose only purpose is to provide administrative services solely to one or more non-profit organizations or charities having the principal purpose described in paragraph (a) and holding a certificate under this subsection.

• Marginal note:Terms of certificate

  (3) A certificate under subsection (2) shall be in the prescribed form and

  • (a) shall certify that, as of a day specified in the certificate, the non-profit organization or charity to which it is issued meets the conditions referred to in that subsection; and

  • (b) if the non-profit organization or charity carries on operations at more than one location, shall specify the location for which it is issued.

• Marginal note:Revocation of new certificate

  (4) Where the Minister believes on reasonable grounds that the holder of a certificate under subsection (2) did not meet the conditions referred to in that subsection at the time it was issued or has since ceased to meet those conditions, the Minister may, by notice sent to the holder, revoke the certificate effective as of any day on or after the day on which the certificate was issued to the holder or the holder ceased to meet those conditions, as the case may be.

• Marginal note:Revocation of old certificate

  (5) Where the Minister believes on reasonable grounds that the holder of a certificate under this section, as it read immediately before February 11, 1988, does not meet the conditions referred to in subsection (2), the Minister may, by notice sent to the holder, revoke the certificate effective as of any day on or after which the holder did not meet those conditions.

• Marginal note:Payment where use by certified or previously certified institutions

  (6) Where tax under Part VI has been paid in respect of any goods and a certified institution or previously certified institution has purchased the goods on or after the specified day for the sole use of the institution and not for resale and met the conditions referred to in subsection (2) at the time of the purchase, an amount equal to the amount of that tax shall, subject to this Part, be paid to that institution if it applies therefor within two years after it purchased the goods.

• Marginal note:Payment where use by certified or previously certified institutions prior to certification

  (7) Where tax under Part VI has been paid in respect of any goods and a non-profit organization or charity to which a certificate was subsequently issued under subsection (2) or this section, as it read immediately before February 11, 1988, or a person acting on behalf of such an organization or charity, has purchased the goods within two years before the specified day for the sole use of the organization or charity and not for resale and the organization or charity was constructing a building for its own use at the time of the purchase, an amount equal to the amount of that tax shall, subject to this Part, be paid to that organization or charity if it applies therefor within two years after the day on which the certificate was issued to the organization or charity.

• Marginal note:Exception

  (8) Where a certificate under subsection (2) specifies a location for which it is issued or a certificate issued under this section, as it read immediately before February 11, 1988, specifies an address of the holder of the certificate, no amount shall be paid pursuant to subsection (6) or (7) to the certified institution or previously certified institution unless the goods were purchased for the sole use of that institution at that location or address and not for resale.